S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2551--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by M. of A. HYNDMAN, SAYEGH -- read once and referred to the
   Committee on Transportation -- recommitted to the Committee on  Trans-
   portation  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the vehicle and traffic law, in relation  to  increasing
   the  minimum insurance coverage requirements for motor vehicles rented
   or leased in the state of New York
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 4 of section 311 of the vehi-
 cle and traffic law, as amended by chapter 305 of the laws of  1995,  is
 amended to read as follows:
   (a) Affording coverage as defined in the minimum provisions prescribed
 in  a  regulation  which  shall  be promulgated by the superintendent at
 least ninety days prior to effective date of this act.  The  superinten-
 dent  before  promulgating  such  regulations  or any amendment thereof,
 shall consult with all insurers licensed to write  automobile  liability
 insurance in this state and shall not prescribe minimum provisions which
 fail  to  reflect the provisions of automobile liability insurance poli-
 cies, other than motor vehicle liability policies as defined in  section
 three  hundred  forty-five  of this chapter, issued within this state at
 the date of such regulation or amendment thereof.  Nothing contained  in
 such  regulation  or  in  this  article  shall prohibit any insurer from
 affording coverage under an owner's policy of liability  insurance  more
 liberal  than  that  required  by  said minimum provisions.   Every such
 owner's policy of liability insurance shall provide insurance subject to
 said regulation against loss from  the  liability  imposed  by  law  for
 damages,  including  damages  for  care and loss of services, because of
 bodily injury to or death of any person and injury to or destruction  of
 property arising out of the ownership, maintenance, use, or operation of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06443-02-4
              

 A. 2551--A                          2
 
 a specific motor vehicle or motor vehicles within the state of New York,
 or  elsewhere  in  the United States in North America or the Dominion of
 Canada, subject to a  limit,  exclusive  of  interest  and  costs,  with
 respect to each such motor vehicle except a tow truck OR A MOTOR VEHICLE
 WHICH  IS RENTED OR LEASED FROM A PERSON, ORGANIZATION OR BUSINESS REGU-
 LARLY ENGAGED IN THE BUSINESS OF RENTING OR LEASING  MOTOR  VEHICLES  TO
 THE  GENERAL  PUBLIC,  of twenty-five thousand dollars because of bodily
 injuries to and fifty thousand dollars because of death of one person in
 any one accident and, subject to said limit for one person, to  a  limit
 of  fifty  thousand  dollars because of bodily injury to and one hundred
 thousand dollars because of death of two or  more  persons  in  any  one
 accident, and to a limit of ten thousand dollars because of injury to or
 destruction of property of others in any one accident provided, however,
 that such policy need not be for a period coterminous with the registra-
 tion period of the vehicle insured. The limit, exclusive of interest and
 costs,  with  respect to a tow truck shall be a combined single limit of
 at least three hundred thousand dollars  because  of  bodily  injury  or
 death  to  one  or  more  persons or because of injury or destruction of
 property of others in any one accident, and to a  limit  of  twenty-five
 thousand dollars because of damage to a vehicle in the care, custody and
 control  of  the  insured.   THE LIMIT, EXCLUSIVE OF INTEREST AND COSTS,
 WITH RESPECT TO A MOTOR VEHICLE WHICH IS RENTED OR LEASED FROM A PERSON,
 ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSINESS OF RENTING OR
 LEASING MOTOR VEHICLES TO THE GENERAL PUBLIC, SHALL BE A COMBINED SINGLE
 LIMIT OF AT LEAST ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS BECAUSE
 OF BODILY INJURY OR DEATH TO ONE OR MORE PERSONS OR BECAUSE OF INJURY OR
 DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT, AND TO A LIMIT OF
 TWENTY-FIVE THOUSAND DOLLARS BECAUSE OF DAMAGE TO A VEHICLE IN THE CARE,
 CUSTODY AND CONTROL OF THE INSURED. Any insurer authorized to  issue  an
 owner's  policy  of  liability insurance as provided for in this article
 may, pending the issue of such a policy, make an agreement, to be  known
 as  a binder, or may, in lieu of such a policy, issue a renewal endorse-
 ment or evidence of renewal of an existing policy; each of  which  shall
 be  construed  to  provide indemnity or protection in like manner and to
 the same extent as such a policy. The provisions of this  article  shall
 apply  to  such  binders,  renewal endorsements or evidences of renewal.
 Every such policy issued insuring private passenger vehicles  and  every
 renewal policy, renewal endorsement, or other evidence of renewal issued
 shall  have  attached  thereto  a  rating information form which clearly
 specifies  and  defines  the  rating  classification  assigned  thereto,
 including any applicable merit rating plan; and
   § 2. Section 312 of the vehicle and traffic law is amended by adding a
 new subdivision 6 to read as follows:
   6. (A) NO MOTOR VEHICLE SHALL BE LEASED OR RENTED IN THIS STATE UNLESS
 UPON  THE REGISTRATION OF THE LEASED OR RENTED MOTOR VEHICLE, THE APPLI-
 CATION FOR SUCH REGISTRATION IS ACCOMPANIED BY PROOF OF FINANCIAL  SECU-
 RITY  REQUIRED  BY  SECTION  THREE  HUNDRED ELEVEN OF THIS ARTICLE WHICH
 SHALL BE EVIDENCED BY PROOF OF INSURANCE  OR  EVIDENCE  OF  A  FINANCIAL
 SECURITY  BOND, A FINANCIAL SECURITY DEPOSIT OR QUALIFICATION AS A SELF-
 INSURER UNDER SECTION THREE HUNDRED SIXTEEN OF THIS  ARTICLE;  PROVIDED,
 THAT  IF  DIRECTED  BY  REGULATION  OF THE COMMISSIONER, UPON RENEWAL OF
 REGISTRATION AN APPLICATION ACCOMPANIED BY A CERTIFICATE OF REGISTRATION
 OR RENEWAL STUB IN FORCE IMMEDIATELY PRECEDING THE DATE  OF  APPLICATION
 FOR  RENEWAL,  TOGETHER  WITH  A  STATEMENT  IN A FORM PRESCRIBED BY THE
 COMMISSIONER CERTIFYING THAT THERE IS IN EFFECT PROOF OF FINANCIAL SECU-
 RITY, SHALL MEET THE REQUIREMENTS OF THIS SECTION. UPON THE ISSUANCE  OR
 A. 2551--A                          3
 
 RENEWAL  OF  A  PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY SUBJECT TO
 THE PROVISIONS OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THE
 INSURANCE LAW, THE INSURANCE COMPANY SHALL PROVIDE THE INSURED  WITH  AN
 INFORMATIONAL  STATEMENT  OUTLINING THE LEGAL AND FINANCIAL CONSEQUENCES
 OF CONVICTIONS UNDER SECTION ELEVEN HUNDRED NINETY-TWO OF THIS  CHAPTER,
 PERTAINING  TO  OPERATING  A  MOTOR VEHICLE WHILE UNDER THE INFLUENCE OF
 ALCOHOL OR DRUGS. SUCH INFORMATION SHALL BE SUPPLIED TO THE  COMPANY  BY
 THE  STATE  DEPARTMENT  OF  FINANCIAL  SERVICES IN CONSULTATION WITH THE
 COMMISSIONER.
   (B) THE OWNER AND REGISTRANT IF THE REGISTRANT IS DIFFERENT  FROM  THE
 OWNER  OF  SUCH  LEASED  OR RENTED MOTOR VEHICLE SHALL MAINTAIN PROOF OF
 FINANCIAL SECURITY CONTINUOUSLY THROUGHOUT THE REGISTRATION  PERIOD  AND
 HIS  FAILURE TO PRODUCE PROOF OF FINANCIAL SECURITY WHEN REQUESTED TO DO
 SO UPON DEMAND OF A MAGISTRATE, MOTOR VEHICLE INSPECTOR, PEACE  OFFICER,
 ACTING  PURSUANT  TO  HIS  SPECIAL DUTIES, OR POLICE OFFICER, WHILE SUCH
 VEHICLE IS BEING OPERATED UPON THE PUBLIC HIGHWAY, SHALL BE  PRESUMPTIVE
 EVIDENCE OF OPERATING A MOTOR VEHICLE WITHOUT PROOF OF FINANCIAL SECURI-
 TY.  UPON THE PRODUCTION OF PROOF OF FINANCIAL SECURITY SUCH PRESUMPTION
 IS REMOVED. PRODUCTION OF PROOF OF FINANCIAL SECURITY  MAY  BE  MADE  BY
 MAILING  SUCH  PROOF TO THE COURT HAVING JURISDICTION IN THE MATTER, AND
 ANY  NECESSARY  RESPONSE  BY  SUCH  COURT  OR  ACKNOWLEDGEMENT  OF   THE
 PRODUCTION  OF  SUCH PROOF MAY ALSO BE MADE BY MAIL. WHEN INSURANCE WITH
 RESPECT TO ANY MOTOR VEHICLE, OTHER THAN A MOTORCYCLE, IS TERMINATED THE
 OWNER SHALL  SURRENDER  FORTHWITH  THEIR  REGISTRATION  CERTIFICATE  AND
 NUMBER  PLATES OF THE VEHICLE TO THE COMMISSIONER UNLESS PROOF OF FINAN-
 CIAL SECURITY OTHERWISE IS MAINTAINED IN COMPLIANCE WITH THIS ARTICLE.
   (C) THE OWNER OF ANY LEASED OR RENTED VEHICLE THAT FAILS  TO  MAINTAIN
 THE  PROOF  OF  FINANCIAL SECURITY REQUIRED ABOVE MAY BE HELD PERSONALLY
 LIABLE FOR ANY JUDGMENT ENTERED AGAINST ANY DRIVER AND/OR REGISTRANT  OF
 THE  LEASED  OR  RENTED  VEHICLE  FOR  DAMAGES  SUSTAINED AS A RESULT OF
 PERSONAL INJURY, WRONGFUL DEATH AND/OR PROPERTY  DAMAGE  SUFFERED  AS  A
 RESULT OF THE USE AND OPERATION OF THE LEASED OR RENTED VEHICLE.
   §  3. Paragraph 3 of subdivision (b) of section 345 of the vehicle and
 traffic law, as amended by chapter 305 of the laws of 1995,  is  amended
 to read as follows:
   (3)  Shall  insure  the  insured,  THE VEHICLE OPERATOR, or such other
 person against loss from the  liability  imposed  by  law  for  damages,
 including damages for care and loss of services because of bodily injury
 to or death of any person and injury to or destruction of property aris-
 ing  out  of the ownership, maintenance, use, or operation of such motor
 vehicle or motor vehicles within the state of New York, or elsewhere  in
 the United States in North America or the Dominion of Canada, subject to
 a limit, exclusive of interest and cost, with respect to each such motor
 vehicle, except a tow truck OR A MOTOR VEHICLE WHICH IS RENTED OR LEASED
 FROM  A  PERSON, ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSI-
 NESS OF RENTING OR LEASING MOTOR VEHICLES  TO  THE  GENERAL  PUBLIC,  of
 twenty-five  thousand dollars because of bodily injury to or fifty thou-
 sand dollars because of death of one person in  any  one  accident  and,
 subject  to  said  limit  for  one  person, to a limit of fifty thousand
 dollars because of bodily injury to  or  one  hundred  thousand  dollars
 because  of  death  of two or more persons in any one accident, and to a
 limit of ten thousand dollars because of injury  to  or  destruction  of
 property of others in any one accident. The limit, exclusive of interest
 and  costs, with respect to a tow truck shall be a combined single limit
 of three hundred thousand dollars because of bodily injury [of] OR death
 to one or more persons or because of injury or destruction  of  property
 A. 2551--A                          4
 
 of  others  in  any one accident, and to a limit of twenty-five thousand
 dollars because of damage to a vehicle in the care, custody and  control
 of  the  insured.    THE  LIMIT,  EXCLUSIVE  OF INTEREST AND COSTS, WITH
 RESPECT  TO  A  MOTOR  VEHICLE  WHICH IS RENTED OR LEASED FROM A PERSON,
 ORGANIZATION OR BUSINESS REGULARLY ENGAGED IN THE BUSINESS OF RENTING OR
 LEASING MOTOR VEHICLES TO THE GENERAL PUBLIC, SHALL BE A COMBINED SINGLE
 LIMIT OF AT LEAST ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS BECAUSE
 OF BODILY INJURY OR DEATH TO ONE OR MORE PERSONS OR BECAUSE OF INJURY OR
 DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT, AND TO A LIMIT OF
 TWENTY-FIVE THOUSAND DOLLARS BECAUSE OF DAMAGE TO A VEHICLE IN THE CARE,
 CUSTODY AND CONTROL OF THE INSURED.
   § 4. This act shall take effect one year after it shall have become  a
 law and shall apply to policies issued or renewed on or after such date.